nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2025–10–27
twelve papers chosen by
Paul Makdissi, Université d’Ottawa


  1. Small and Medium-Sized Enterprises in Morocco: Analysis of Challenges, Characteristics, and Government Support Initiatives By Yousra Nassou; Zakaria Bennani
  2. From frontline to central regional node: Turkey's recalibration of its regional strategy in Iraq By Tanrıverdi Yaşar, Nebahat
  3. New wars 2.0: Massive violence against civilians in ongoing armed conflicts demands a political rethink By Albrecht, Aljoscha; Vorrath, Judith
  4. What Do Market-Access Subsidies Do? Experimental Evidence from Tunisia By Ali, Nadia; De Giorgi, Giacomo; Rahman, Aminur; Verhoogen, Eric
  5. "The Impact of Climate Change on the Palestinian Sectoral Reallocation of Labor" By Sameh Hallaq; Yousuf Daas
  6. Artificial Intelligence as a Driver of Financial Education: Opportunities and Challenges. By Aziza Imane El Hachimy; Said Toufik
  7. Energy Transformation in the Kurdistan Region: Clean Electricity Economy within the Scope of the Runaki Project By Toptancî, Alî
  8. Nation-building and mass migration: Evidence from Mandatory Palestine By Laura Panza; Yanos Zylberberg
  9. The Impact of Minimum Wage Increases on Infant Health: Evidence from Türkiye's 2016 Wage Hike By Hiziroglu Aygun, Aysun; Karaca-Mandic, Pinar
  10. Rights, Capabilities, and Critical Pedagogy: Assessing Empowerment in INGO-led Non-formal Education for Refugees and Migrants in Libya By Altireeki, Waed Fathi
  11. The political fallout of European migration policy in Libya: Consolidating the detention system, empowering warlords and provoking backlash from the Libyan public By Lacher, Wolfram
  12. Die politischen Kosten europäischer Migrationspolitik in Libyen: Konsolidierung des Internierungssystems, Aufwertung von Gewaltakteuren, Ablehnung durch die libysche Öffentlichkeit By Lacher, Wolfram

  1. By: Yousra Nassou; Zakaria Bennani (ENCGT - Ecole Nationale de Commerce et de Gestion de Tanger - UAE - Abdelmalek Essaadi University [Tétouan] = Université Abdelmalek Essaadi [Tétouan])
    Abstract: This study explores the historical evolution of SMEs in Morocco, emphasizing their diversity and the challenges they face. Through a comprehensive literature review, the analysis focuses on aspects specific to SMEs, including owner-driven management, limited resources, and performance measurement systems tailored to these structures. It also highlights the distinctive challenges of Moroccan SMEs, the influences of the economic environment, and government interventions, particularly the INTELAKA program, aimed at strengthening the competitiveness of SMEs in the country.
    Keywords: Government Support, Morocco, SMEs
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05217049
  2. By: Tanrıverdi Yaşar, Nebahat
    Abstract: Once viewed by Ankara primarily as a fragmented security frontier, Iraq now sits at the centre of its regional strategy. This recalibration is shaped by shifting regional dynamics in the aftermath of 7 October: the weakening of Iran's influence across multiple fronts, the Gulf states' rising economic and diplomatic weight, and the search for new stabilising axes in the Middle East. Turkey's renewed engagement is not just about countering the Kurdistan Workers Party (PKK) - it signals broader regional aspirations that combines security cooperation with Baghdad and Erbil, a fragile domestic peace process in Turkey, and a strategic push to embed Iraq within Turkey-Gulf trade and key regional energy infrastructures, including oil pipelines, prospective gas exports, and electricity interconnections. At the heart of this shift is a geoeconomic logic: by investing in shared infrastructure and fostering mutual interdependencies, Ankara seeks to consolidate its regional role. For Europe, the outcome will reverberate beyond Iraq by reshaping connectivity, energy access, and the stability of its south-eastern neighbours.
    Keywords: Turkey, Iraq, Gulf states, Kurdistan Workers Party (PKK), Recep Tayyip Erdoægan, Persian Gulf, oil pipelines, prospective gas exports, electricity interconnections
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:swpcom:329920
  3. By: Albrecht, Aljoscha; Vorrath, Judith
    Abstract: The existential catastrophe faced by the population of the Gaza Strip currently looms large in the foreign policy and security debates. The plight of civilians there is particularly acute. Yet, severe crises persist elsewhere too - from Ukraine and Sudan to Myanmar, the Democratic Republic of Congo, and Haiti - where protracted violent conflicts continue to cause grave suffering among civilians. This grim reality is underscored in the United Nations Secretary-General's latest annual report, released in May. At the same time, conventional mechanisms for international conflict resolution are failing in an increasing number of contexts. In light of this, it is crucial to systematically track evolving conflict dynamics and to revise approaches to the protection of civilians accordingly.
    Keywords: violence, violent conflicts, Gaza Strip, Ukraine, Sudan, Myanmar, Democratic Republic of Congo, Haiti, United Nations Secretary-General, international conflict resolution, protection of civilians
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:swpcom:329913
  4. By: Ali, Nadia (Columbia University); De Giorgi, Giacomo (University of Geneva); Rahman, Aminur (Asian Development Bank); Verhoogen, Eric (Columbia University)
    Abstract: Many countries seek to promote exports by subsidizing market access, but evidence on such efforts has been mixed. We present the first randomized evaluation of a government financial-support program explicitly targeting exports, the Tasdir+ program in Tunisia. The program offered matching grants for fixed market-access costs but not variable costs. Tracking outcomes in administrative data, we find positive effects on exports on average. We find limited impacts on the number of destinations or exported products, which were stated policy targets. The finding that the fixed-cost subsidies expanded exports on the intensive margin but not the extensive margins of destinations or products stands in contrast to the predictions of several workhorse trade models.
    Keywords: intensive margin, market access, export promotion
    JEL: F14 O14
    Date: 2025–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp18184
  5. By: Sameh Hallaq; Yousuf Daas
    Abstract: The research leverages yearly variations in climate variables, such as rainfall and temperature, across the West Bank from 1999 to 2018 to assess their influence on individuals' decisions to stay in the agricultural sector. The main findings suggest that an increase in rainfall in the previous year is associated with a higher proportion of workers in the agricultural sector, especially in regions where agriculture is the primary economic activity. Temperature variation is also an important factor. An increase in the maximum temperature will generally have a negative effect on the supply of labor in the agricultural sector, while an increase in the minimum temperature may have a positive effect. However, this effect varies across different regions of the West Bank, reflecting the diverse agricultural practices and irrigation methods employed. The study also examines two potential mechanisms through which climate change affects labor decisions: agricultural labor migration to the Israeli labor market and how climate shocks affect agricultural wages.
    Keywords: Labor Supply; Climate Change; Agriculture; West Bank
    JEL: J01 J43 Q54
    Date: 2023–11
    URL: https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1033
  6. By: Aziza Imane El Hachimy (Laboratoire d’analyse Economique Et Modélisation (LEAM) - Faculté des Sciences Juridiques Economiques et Sociales - Souissi, Rabat); Said Toufik (Laboratoire d’analyse Economique Et Modélisation (LEAM) - Faculté des Sciences Juridiques Economiques et Sociales - Souissi, Rabat)
    Abstract: Artificial intelligence (AI) has experienced major advances over recent decades, ushering in a new era of machines capable of learning, self-correcting, and mimicking human behavior. While sometimes seen as a potential source of future conflicts, AI is also perceived as a universal solution. In parallel, financial education has become a key pillar for economic development and financial stability, especially in an increasingly complex and uncertain global environment. The digital era has profoundly transformed organizational practices, particularly in information management and education. In this context, AI offers new opportunities to enhance and personalize financial training, making financial solutions more accessible and inclusive through the use of algorithms and data. This study aims to analyze the impact of AI on financial education. After a literature review covering the key concepts of AI and financial education, we adopted a hypothetico-deductive approach, conducting a quantitative survey with a sample of 384 individuals' representative of the Moroccan population who have pursued higher education (universities, business schools, engineering schools, and vocational training institutions). The study assesses respondents' financial behaviors, their perceptions of AI in financial education, and their ability to integrate these technologies into personal financial management. Preliminary findings suggest that AI has the potential to enhance financial knowledge among young graduates, while also raising concerns related to trust, accessibility, and digital inequality. Finally, the research highlights the main challenges to be addressed for a successful integration of AI in financial education, particularly in terms of awareness, regulation, and the development of digital skills.
    Abstract: L'intelligence artificielle a connu, au cours des dernières décennies, des avancées majeures et annonce une nouvelle ère, celle des machines capables d'apprendre, de s'autocorriger et de mimer le comportement humain, ainsi elle est souvent définie comme la source des conflits futurs et aussi perçue comme un remède universel, Parallèlement, l'éducation financière est devenue un pilier indispensable pour le développement économique et la stabilité financière., principalement dans un environnement mondial de plus en plus complexe et incertain. L'ère du numérique a causé de profondes transformations dans les pratiques des organismes, notamment à la gestion de l'information et de l'éducation, l'Intelligence Artificielle (IA) propose de nouvelles perspectives d'amélioration et de personnalisation de la formation financière. L'IA permet de créer des solutions financières plus accessibles et inclusives en exploitant les algorithmes et les données. Cette recherche a pour objectif d'analyser l'impact de l'intelligence artificielle (IA) sur l'éducation financière. Après une revue de la littérature portant sur les concepts clés de l'IA et de l'éducation financière, nous avons adopté une démarche hypothético-déductive, mobilisant une enquête quantitative auprès d'un échantillon de 384 individus représentatifs de la population marocaine ayant poursuivi des études supérieures (universités, écoles de commerce, écoles d'ingénieurs et formations professionnelles). L'étude évalue à la fois les comportements financiers des répondants, leurs perceptions de l'utilisation de l'IA dans l'éducation financière et leur aptitude à intégrer ces technologies dans la gestion de leurs finances personnelles. Les résultats préliminaires indiquent que l'IA contribue potentiellement à améliorer les connaissances financières des jeunes diplômés, tout en soulevant certaines limites liées à la confiance, à l'accessibilité et aux inégalités numériques. Enfin, la recherche met en évidence les principaux défis à surmonter pour une intégration réussie de l'IA dans l'éducation financière, notamment en matière de sensibilisation, de réglementation et de développement des compétences numériques.
    Keywords: Financial Education, IA, Financial Behavior, financial inclusion, Éducation financière, Intelligence artificielle, Inclusion financières, comportement financier
    Date: 2025–09–26
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05311489
  7. By: Toptancî, Alî
    Abstract: This study will examine the economic impacts of a transformation in which clean energy becomes more prevalent in the Kurdistan Region, within the scope of the Runaki Project. The elimination of approximately 3, 200 private generators within the scope of the Runaki Project marks the first step in transitioning to clean electricity in the Kurdistan Region. Thanks to the Runaki, cities such as Erbil, Duhok, Slemani, Halabja, and their districts started to have access to clean electricity and benefit from uninterrupted electrical energy. Before the Runaki Project, electricity costs in the Kurdistan Region were reflected in high bills due to private generators that took advantage of power outages and caused air pollution. Therefore, people’s budgets were negatively affected due to high electricity costs. In line with the decision taken by the Kurdistan Regional Government (KRG), with an investment of approximately $200 million regarding the Runaki Project, works are ongoing to eliminate air pollution, provide clean and uninterrupted electricity, and ensure that affordable electricity will be widespread throughout the Kurdistan Region by the end of 2026. In the long term, the transition to clean energy in the Kurdistan Region within the scope of the Runaki Project is expected to contribute to economic growth and prevent the recent slowdown in productivity in the Kurdistan Region. It is envisioned that the Runaki Project will contribute to economic prosperity in the Kurdistan Region within the context of the 2030-2050 Sustainable Development Goals (SDGs) and as a measure to mitigate the climate crisis resulting from global warming. In this context, the Runaki Project has observed that efforts to combat inflation, increase employment, and prevent recession in the Kurdistan Region are accelerating, yielding numerous economic benefits. The Runaki Project will enhance the electricity grid, lower electricity costs throughout the Kurdistan Region, and provide additional savings for the citizens of the Kurdistan Region.
    Keywords: Kurdistan Region, Runaki Project, clean electricity, uninterrupted electricity, economic growth, SDGs.
    JEL: Q40 Q41 Q42 Q43 Q48 Q54 Q56 R11 R13 R58
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:126289
  8. By: Laura Panza; Yanos Zylberberg
    Abstract: This paper examines the grassroots of nation-building in times of mass migration. We study the emergence of cohesive communities and societal leadership within the scattered, diverse Jewish settlements of Mandatory Palestine between 1920 and 1947. Our empirical strategy relies on a new “frontier expansion†algorithm to predict the dynamics of Jewish settlement creation, which we combine with migrant characteristics in a shift-share design to isolate exogenous variation in the local composition of settlers across locations. We find that: (i) leaders who played a crucial role in shaping the early state of Israel emerged from diverse communities; (ii) these communities were more cohesive and maintained better relationships with Arab neighbors; and (iii) these effects are predominantly observed in kibbutzim, i.e., integrated settlements with communal lifestyle. Further evidence suggests that these diverse, tight-knit communities were facing and addressing nation-building challenges at a local level, e.g., setting up institutions to foster a shared identity.
    Date: 2025–04–02
    URL: https://d.repec.org/n?u=RePEc:bri:uobdis:25/796
  9. By: Hiziroglu Aygun, Aysun; Karaca-Mandic, Pinar
    Abstract: This paper examines the impact of a significant minimum wage increase in Türkiye on infant birth weight and neonatal health. We utilize data from the Türkiye Demographic and Health Survey to investigate the birth outcomes of babies exposed to a 30% minimum wage hike during pregnancy. Leveraging variation in the predicted probability that a household includes a minimum-wage earner, we estimate a difference-in-differences model to identify the causal effect of prenatal exposure to the minimum wage increase. Our analysis reveals that exposure to a higher minimum wage during pregnancy significantly increases birth weight and reduces the likelihood of low birth weight (
    Keywords: minimum wage, birth weight, prenatal health care, universal health coverage, Türkiye
    JEL: I12 J13 I38
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:esprep:329823
  10. By: Altireeki, Waed Fathi (Norwegian Refugee Council)
    Abstract: This study investigates how INGO-led NFE programmes for children and youth on the move seek to empower learners amid the complexities of mixed migration. It takes Libya as a case study, given its position as a central route to the Mediterranean and its high influx of refugees and migrants. The study proposes an integrated conceptual lens—combining the 4As rights-based framework, the capability approach, and critical pedagogy—to examine the empowering dimensions within INGO practices. Based on qualitative interviews with 12 staff from five INGOs, findings reaffirm critiques of Education in Emergencies’ short-term approach, highlighting its emphasis on provision over impact. Education’s empowering potential is found to be constrained by the absence of progressive learning pathways and the limited efforts to enhance learners’ agency.
    Date: 2025–10–17
    URL: https://d.repec.org/n?u=RePEc:osf:socarx:c8bzp_v1
  11. By: Lacher, Wolfram
    Abstract: The European Commission, Italy, and Greece are seeking to curb irregular migration through Libya. These efforts come at a time when several aspects of European Union (EU) migration policy in Libya must be acknowledged as having failed. This is particularly true of attempts to improve conditions in detention centres, and the situation of migrant workers and refugees more broadly. Most recently, a campaign by Libyan authorities against what they portrayed as EU plans to permanently settle migrants in the country showed that European policy is provoking considerable backlash. As the softer components of this policy have reached an impasse, it has been stripped to its hard core, namely arrangements with Libyan security actors to prevent departures, as well as support for interceptions at sea and returns to countries of origin. These measures are inextricably tied to Libya's system of arbitrary detention, which serves criminal interests. European attempts to disavow this system have been unconvincing and are preventing a serious reckoning with the political costs involved.
    Keywords: Libya, irregular migration, International Organization for Migration (IOM), United Nations (UN), arms embargo, Khalifa Haftar, European Union, European Commission, Italy, Greece, migrant workers, refugees, interceptions at sea, returns to countries of origin, Maritime Rescue Coordination Centre (MRCC), Department for Combating Illegal Migration (DCIM)
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:swpcom:329916
  12. By: Lacher, Wolfram
    Abstract: Gemeinsam mit Italien und Griechenland versucht die EU-Kommission, irreguläre Ankünfte von Migranten über Libyen zu reduzieren. Diese Bemühungen kommen zu einem Zeitpunkt, an dem mehrere Komponenten der EU-Migrationspolitik in Libyen als gescheitert gelten müssen. Das gilt besonders für Versuche, die Zustände in den Internierungszentren zu mildern sowie die Lage von Arbeitsmigranten und Geflüchteten im Land insgesamt zu verbessern. Welche Widerstände die europäische Migrationspolitik hervorruft, zeigte zuletzt eine Kampagne der libyschen Behörden gegen vermeintliche Bestrebungen der EU, Migranten auf Dauer im Land anzusiedeln. Was bleibt, ist der harte Kern europäischer Politik: Vereinbarungen mit Gewaltakteuren, um Überfahrten zu verhindern, sowie die Unterstützung für Abfangoperationen auf See und Rückführungen in Herkunftsländer. Diese EU-Politik ist untrennbar mit dem libyschen System willkürlicher Internierung verknüpft, das kriminellen Interessen dient. Europäische Versuche, sich von diesem System zu distanzieren, sind unglaubwürdig und stehen einer Bewertung der politischen Kosten im Wege.
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:swpakt:329910

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